HBM IP Market Size, share & Segmentation by Type (PHY IP and HBM Controller IP), Application (Servers, Internet and Others) and Region | Global Forecast 2025-2032

HBM IP Market Report Scope & Overview:

The HBM IP Market size was valued at USD 201.15 Million in 2024 and is projected to reach USD 513.47 Million by 2032, growing at a CAGR of 12.43% during 2025-2032.

The HBM IP market is experiencing a high growth due to the rising need for HPC, AI, and data center applications. HBM technologies, such as HBM2E and the upcoming HBM3E, enable high bandwidth and energy efficiency, which is crucial for applications with huge amounts of data movement, like AI and machine learning. The market is projected to grow further as memory performance is improved to accommodate the increasing requirement of data hungry workloads by industries. Furthermore, increasing deployment of advanced semiconductor manufacturing processes is further boosting the implementation of HBM IP into next-gen systems. The HBM IP market trends is expected to expand largely owing to the continuous development of memory technologies.

Global Unichip Corp. (GUC) recently announced the adoption of its 3nm HBM3E Controller and PHY IP by a leading Cloud Service Provider (CSP) and several High-Performance Computing (HPC) solution providers. This cutting-edge ASIC, featuring the latest 9.2Gbps HBM3E memory technology, is set to tape out in 2024.

The U.S HBM IP market size was valued at USD 34.95 Million in 2024 and is projected to reach USD 90.49 Million by 2032, growing at a CAGR of 12.62%, driven by the rising demand for high-performance computing, AI, and data-intensive applications. Increasing adoption in data centers and GPUs, along with advancements in 3D-stacked memory technology, further fuels market growth, enabling faster data processing and energy-efficient memory solutions across industries.

Market Dynamics:

Drivers:

• Increasing Demand for High-Bandwidth Memory in AI and HPC

Lower power and high-performance computing (HPC) and artificial intelligence (AI) are the increasing demands is a significant driver of the HBM IP market. In addition, with the evolution of AI workloads such as deep learning, big-data analytics, real time processing etc., there is greater need for more performant and faster memory technologies. High Bandwidth Memory (HBM) provides the necessary speed and capacity to support such data-intensive workloads with low latency. Furthermore, the surge of data centers and cloud computing, which require high-speed memory to work efficiently, is driving the demand for HBM-based products rapidly. These factors, in addition to the continuous developments in HBM-based solutions, are accelerating the HBM IP market growth.

Cadence Design announced its industry's fastest HBM4 12.8Gbps memory IP solution, offering double the bandwidth compared to HBM3E and 20% greater power efficiency. This solution is designed for AI training and HPC hardware systems, available for customer engagements with TSMC's N3 and N2 technology nodes.

Restraints:

• Integrating HBM IP into Semiconductor Systems Design and Expertise Requirements

High Bandwidth Memory (HBM) IP faces strenuous restrictions to be integrated into a semiconductor system (System-on-Chip; SoC) because of complex design leeway. HBM technology demand special memory subsystem that are distinct from conventional memory architectures, posing technical challenges in their integration. It involves paying close attention to issues including signal integrity, power management, interposer design, and the like, all requiring expertise in advanced packaging and system architecture. Furthermore, close coupling between memory and processor units makes the integration even more difficult. They frequently encounter these difficulties with long development cycles, high costs and errors in the integration. This makes deployment not only slow due to the demand on trained engineers, complex tools and extensive validation but high risk for delayed deployment.

Opportunities:

• Increasing Need for HBM IP Drives Growth in AI and High-Performance Computing Sectors

There is an accelerating demand for High-Bandwidth Memory (HBM) IP as specs increase and industries shift to the latest computing technologies, such as AI / deep learning, HPC and the gaming market. HBM IP brings valuable advantages including high memory bandwidth, low latency, and high performance, which are crucial for processing of big data and intensive computing. As the demand for higher speeds and increased efficiency from AI accelerators, GPUs, and advanced computing applications continues to rise, HBMIP offerings. Vendors of advanced HBM IP, particularly suppliers of pre-qualified memory controllers and PHYs, are well poised to capitalize on this increasing market and serve an industry that continues to adapt to new requirements.

Rambus has launched the industry’s first HBM4 Memory Controller IP, offering over double the throughput of HBM3 to meet the demands of AI and HPC workloads. This new controller supports up to 10 Gbps, delivering 2.56 Terabytes per second of bandwidth for next-gen processors and accelerators.

Challenges:

• Integration Challenges of HBM IP with Emerging Technologies like AI, Quantum Computing, and 5G

High Bandwidth Memory (HBM) IP solutions face distinct challenges when the technologies that enable them, such as artificial intelligence (AI), quantum computing, 5G networks and more, evolve at a breakneck pace. These advanced technologies require high performance memory solutions with the capability to scale and easily integrate into more systems that are complicated. Additionally, the ability to have HBM IP that can be tuned to these unique application areas (e.g., super low latency, super high throughput, ultra-low-power, etc.) is still a work in progress. Furthermore, there is also the issue of interoperation of different types of hardware and applications for the text to speech technology. With the continued rise of AI and quantum computing, plus 5G adoption, the demand for flexible, scalable, and future-proof memory solutions is more significant hat ever, creating a challenge for HBM IP suppliers to ensure their offerings remain aligned with customer requirements.

Segmentation Analysis:

By Type

The PHY IP held a dominant HBM IP share of around 70% in 2024. Increasing usage of IoT in smart homes, healthcare, and industrial automation industries is expected to fuel growth of the fixed focus lens market. These are key lenses to enable the feature function of IoT devices, and to improve the image taking and processing capabilities. The increasing demand for improved IoT systems is also driving market growth.

The HBM Controller IP segment is expected to experience the fastest growth in the HBM IP market over 2025-2032 with CAGR 14.05%. Demand for faster memory solutions is being fueled by the rapid growth of AI, machine learning, and high-performance computing (HPC) applications. The HBM Controller IP market is growing based on products that demand lower I/O power combined with large bandwidth. This growth is driven by the growing demand for high performance, low latency memory controllers in advanced CPUs.

By Application

The Servers held a dominant HBM IP share of around 55% in 2024. Servers is expected to dominate the HBM IP market due to growing demand for AI and data-centric applications in data centers. The next generation of server architectures require high-bandwidth, low-latency memory access to support data rates ranging from 2400Mbps to 3072Mbps as well as minimizing memory system power.

The Internet segment is expected to experience the fastest growth in the HBM IP market over 2025-2032 with CAGR 13.99%. The growing adoption of high-bandwidth memory solutions is triggering the growth of internet infrastructure supported by the surge in global data traffic, increasing internet penetration rate, and swarming number of IoT devices being interconnected in the coming years. HBM IP supports the fast and efficient execution needed to drive faster internet services, which mean improved data transfer rates and data processing features in the next generation digital networks.

Regional Analysis:

In 2024, the Asia-Pacific dominated the HBM IP market and accounted for 44% of revenue share. Asia-Pacific’s dominance in the HBM IP market is due to the presence of a strong semiconductor industry in the region, rising investments in AI, and high-performance computing and government initiatives with respect to technological advancements. And important markets such as China, South Korea and Taiwan continue to drive demand through investments in data centers and memory-intensive applications.

North America is projected to register the fastest CAGR of 13.71%during 2025-2032, which can be attributed to the increasing investments in the field of artificial intelligence (AI), increasing the data center infrastructure, and increased adoption of HPC (high performance computing) technologies. Leading players and innovation hotspots also drive demand for advanced memory technology in the region.

The United States holds the largest share in the HBM IP market, due to wide AI penetration as well as developed semiconductor infrastructure.

In 2024, Europe emerged as a promising region in the HBM IP market, due to growing investments in AI and high-performance computing systems. Germany has been a top country in the region, driven by strong automotive and industrial automation industries, which requires faster memory solutions to enable high-performance computing and real-time analytics.

LATAM and MEA is experiencing steady growth in the HBM IP market, as the digital infrastructure is being enhanced due to increasing shift towards cloud services and increasing government initiatives for technology innovations. Rising demand for high bandwidth memory in next-generation AI, telecom and data center leads is driving the adoption of advanced HBM IP solutions by regional industries for fast, productive data handling.

Key Players:

The HBM IP market companies are AMD, Synopsys, GUC, Broadcom, Cadence, Rambus, MSquare Technology, Shanghai UniVista, AkroStar, and INNOSILICON and Others.

Recent Developments:

• In Dec 2024, Broadcom has unveiled its advanced 3.5D XDSiP platform, integrating four compute tiles and up to 12 HBM stacks to support AI and HPC workloads. This innovative Face-to-Face (F2F) 3.5D XPU architecture significantly enhances power efficiency, interconnect density, and overall performance.

• In June 2024, Synopsys has launched the industry's first complete PCIe 7.0 IP solution to meet high-bandwidth, low-latency demands of AI workloads.